Denison council backs formal support letter to help reactivate foreign-trade zone option

The Denison City Council unanimously voted to authorize the mayor to provide foreign-trade-zone support letters to any business in the city on request, a procedural measure intended to ease the city's ability to recruit international suppliers that may seek FTZ status.

Tony Kai, president of the Denison Development Alliance, told the council the city is seeking to reestablish an FTZ as a subzone of the Dallas–Fort Worth FTZ and that reactivation is administratively simpler than in the past. "It does not commit us to anything," Kai said of the resolution; any individual business would still require a case‑by‑case economic impact analysis and separate approvals by other taxing entities.

Kai explained FTZ benefits in general terms: "It saves companies and defers these taxes, mostly federal tariffs and custom taxes. In some cases, up to 30%." He said inventory kept in an FTZ can be duty- or tax-deferred until the product is placed into U.S. commerce, which can affect inventory‑tax treatment at the state or local level.

City staff confirmed the other taxing entities — Grayson County and the local school district — would need to consider the FTZ request when a company seeks designation. Mayor Pro Tem Teresa Adams moved to adopt the resolution authorizing the mayor to provide FTZ support letters; Councilman Redwine seconded and the motion passed by voice vote.